Centrepoint profit climbs strongly creating dividend pay-out
Centrepoint Alliance has increased its statutory net profit after tax by 126 per cent and will pay a dividend to its shareholders for the first time in eight years with the group's wealth management business contributing heavily to the results.
Releasing its half yearly results yesterday Centrepoint reported a statutory net profit after tax of $2.9 million and underlying profit before tax of $4.3 million which were an 126 per cent increase and eight per cent increase respectively on the prior corresponding period (pcp).
Centrepoint Alliance Wealth — which includes Professional Investment Services, Alliance Wealth, Associated Advisory Practices, Ventura Funds Management and Investment Diversity — delivered a pre-tax proft of $4 million, up 29 per cent from the pcp.
Centrepoint Alliance managing director, John de Zwart, said the group would pay a fully franked interim dividend of one cent per share. According to Australian Securities Exchange details this would result in shareholders receiving around $1.47 million in interim dividends with Centrepoint offering shareholders a dividend reinvestment program.
De Zwart said the group's insurance funding business delivered a pre-tax profit of $1.6 million, which was down 40 per cent on the pcp due to increased staffing and marketing costs.
He said the two business divisions expected to see cross-over business with about 25 per cent of financial planners, accountants and general insurance brokers connected with Centrepoint considering offering other services including mortgage and general insurance broking services.
He also stated that while adviser losses had taken place during 2012-13 the group had since added around 100 planners across the three licenses and had boosted practice numbers as well. Most of these advisers came across from other licensees, according to de Zwart, who said the group was looking to recruit more experienced advisers interested in a non-institutional advice model.
De Zwart also stated that Centrepoint had boosted the level of funds under management placed through Ventura Funds Management and Investment Diversity while one in two practices in the group were using the internal professional indemnity insurance service instead of going to external insurance brokers.
AUTHOR
Jason Spits
Recommended for you
New York-based firm CC Capital has bumped up its offer to stay ahead of rival bidder Bain Capital.
In a tight race against Morgans, AMP Financial Planning has won back its position as the largest individual licensee in Australia, according to Wealth Data.
Learning to delegate authority and relinquish a hands-on approach is a critical step towards building a self-sustaining financial advice practice, says Assured Support.
Private wealth management company Stellan Capital has appointed a new chief executive, who brings over three decades of experience in the global financial services industry.
